7 European institutions harnessing the power of blockchain technology – Cryptopolitan

by Arthur · April 24, 2023

In recent years, European institutions have increasingly embraced the potential of blockchain technology, with many banks and financial organizations developing and adopting blockchain-based solutions. Here is an overview of some of the initiatives undertaken by European financial institutions that demonstrate the evolving blockchain space.

Table of Contents

Societe Generale

Societe Generale, France’s third-largest bank, launched the Ethereum contract for a euro-pegged stablecoin, EUR CoinVertible (EURCV), in April. The bank’s blockchain-focused subsidiary, Societe Generale-Forge, announced that the stablecoin will be made available exclusively to vetted institutional investors, following strict KYC and AML checks. However, this move illustrates Societe Generale’s commitment to staying compliant with regulatory standards.

The European Investment Bank

The European Investment Bank (EIB), the EU’s primary lender, issued its first digital bond on Ethereum earlier this year, following the previous sale of digital bonds denominated in euros in 2021. The EIB’s use of blockchain technology shows significant confirmation from the European Union.

Siemens

German engineering giant Siemens issued a one-year, $65 million bond on Polygon in February, in compliance with Germany’s electronic securities law. Several major investors, including DekaBank, DZ Bank and Union Investment, participated in the digital bond offering.

ABN AMRO

Dutch bank ABN AMRO used the Stellar blockchain to issue a $492,000 bond on behalf of an aircraft parts company in January. The bank partnered with tokenization firm Bitbond and Fireblocks to facilitate custody, showing ABN AMRO’s interest in blockchain solutions for bond issues.

UBS

Swiss bank UBS issued a $370 million bond on the SIX Digital Exchange blockchain platform, which targets regulated tokenized offerings. The bond was also sold on the Six Swiss exchange, and investors could choose to clear the bond on either SDX or SIX.

BNP Paribas

BNP Paribas, last July, tokenized a bond on the Ethereum blockchain to finance a solar project under French energy giant EDF. This initiative enabled smaller investments and facilitated the development of smaller renewable energy projects.

Banco Santander

Spanish bank Banco Santander issued a $20 million bond on the Ethereum network in September 2019, marking the first end-to-end blockchain bond. More recently, the bank has tested a blockchain-based tokenization platform for the transfer of car ownership of used cars in Brazil.

Conclusion

European institutions have demonstrated their commitment to adopting blockchain technology by implementing it in various use cases. As these institutions continue to explore the potential of blockchain, it is expected that more innovative solutions will emerge, further revolutionizing the financial services industry.